Bitcoin Mining Difficulty Reaches New Record – Could Bitcoin Prices Follow suit?

• Bitcoin mining difficulty has reached a record high of 109.78 trillion, and is expected to decline by 8% in mid-January.

• Miners earned $1.33 billion in December, surpassing November revenue despite a lower retail price.

Bitcoin mining difficulty rose to 109.78 trillion, a new record, after rising 1.16% in the last adjustment on Sunday, it showed. Coinwars data. This metric, which reflects the difficulty of solving the cryptographic problems of the mining process, has risen by 24% in the last 90 days and 52% in the last three months of the year.

This steady growth proves the stability of the network and the increasing competition between miners. It occurs approximately once every two weeks Provide stable mass productiona feature that was implemented into the Bitcoin system by its anonymous creator, Satoshi Nakamoto.

The next mining difficulty adjustment is scheduled for January 14. Preliminary estimates indicate that the number may drop slightly below 8% to about 100.7 trillion. This decline could help relieve some of the pressure on miners as they try to operate in an environment with volatile markets.

However, Bitcoin’s hash rate, which represents the total computing power of the network, recently reached the 800 EH/s mark for the first time. This milestone recorded by Blockchain.com on December 15th shows that the network has strong fundamentals.

Bitcoin prices have fluctuated wildly and reached $108,135 earlier this month before falling to $93,638 as of this writing on CoinGecko. According to some analysts, price trends may follow the hash rate in the long term based on the data analyzed.

High revenue despite low retail price

Bitcoin miners have already earned more than they did in November, earning $1.33 billion in December with just one day left in the month. November revenue was $1.21 billion, with on-chain fees amounting to $38.73 million, while December actually saw $37.69 million in fees. As of the time of writing, there are only 48 hours left in the year, and miners are expected to exceed the fees collected in November.

While the hash price per petahash per second fell from US$61.78 to US$55.57 in the past month, rising Bitcoin prices and the record hash rate of 805 exahashes/second have prevented a decline. Enhancing mining efficiency has led to increased revenues.

Scheme Upgrade mining difficulty The event, which occurred on December 29, is expected to lead to a slight increase in mining difficulty, due to the average block spacing of 9 minutes and 53 seconds. The current network hash rate is 791.45 EH/s with 65 mining farms, each with a minimum mining power of 286.33 KH/s.

Russia imposes a ban on cryptocurrency mining

In related news, the Russian government recently announced Announce Cryptocurrency mining will be banned in ten regions for six years due to high energy use. The ban will come into effect on January 1, 2024 and will last until March 15, 2031, extending to mining complexes in affected areas.

The affected regions are Dagestan, North Ossetia and Chechnya, and the list will be amended from time to time depending on energy requirements. Other measures include bans in other areas for peak load periods, which is also part of the policy.

Russia legalized cryptocurrency mining in July, and the law was passed in August. However, while the country has banned the use of cryptocurrencies in everyday transactions, it allows cross-border payments to avoid sanctions imposed after the invasion of Ukraine.